Education Loan Interest Subsidy Calculator (CSIS and PM-Vidyalaxmi)
Short answer. Two government schemes cut education loan interest during the moratorium. CSIS pays all of it if family income is up to ₹4.5 lakh. PM-Vidyalaxmi pays 3 percentage points if income is below ₹8 lakh. Both apply only to the first ₹10 lakh, and only for studying in India.
An estimate based on the scheme rules published by the Ministry of Education. The bank computes the actual claim on your real disbursement dates. PM-Vidyalaxmi interest subvention is limited to one lakh new students a year, so qualifying does not guarantee a slot.
Two schemes, one moratorium
Interest on an education loan starts running from the first disbursement, but you only start repaying after the moratorium, which is the course period plus one year. That unpaid interest is what both government schemes target. Neither touches your EMIs after the moratorium ends.
The older scheme is the Central Sector Interest Subsidy scheme, now run as PM-USP CSIS. It pays the full moratorium interest for students with family income up to ₹4.5 lakh doing a professional or technical course at a NAAC accredited institution, an NBA accredited course, an Institute of National Importance, or a technical institute approved by a regulator such as the Medical Commission or the Bar Council. There is no limit on the number of students.
PM-Vidyalaxmi sits on top of it. For family income below ₹8 lakh, it pays 3 percentage points of the interest during the moratorium, for any degree or diploma at a Quality Higher Education Institution: the top 100 in NIRF, state government institutions in the top 200, and the remaining central government institutions. It is capped at one lakh fresh students a year.
| PM-USP CSIS | PM-Vidyalaxmi | |
|---|---|---|
| Family income | Up to ₹4.5 lakh | Below ₹8 lakh |
| Subsidy | Full interest during the moratorium | 3 percentage points during the moratorium |
| Loan covered | Up to ₹10 lakh | Up to ₹10 lakh |
| Courses | Professional or technical | All degree and diploma courses |
| Institutions | NAAC or NBA accredited, INIs, regulator approved technical institutes | Top NIRF ranked and central government institutions |
| Slots | No limit | One lakh new students a year |
The part most explainers leave out
The ₹10 lakh cap applies to principal, not to your loan. If you borrow ₹15 lakh, the subsidy is worked out on ₹10 lakh of it, and the interest on the other ₹5 lakh runs in full. The calculator shows that split separately.
A 3 percent subvention on a 9.5 percent loan still leaves most of the interest with you. On an ₹8 lakh, four year course, moratorium interest comes to well over ₹2 lakh, and PM-Vidyalaxmi takes away less than a third of it. It helps, but it is not a free loan. Only CSIS is.
The schemes do not stack with other help. A student already getting another central or state scholarship, interest subsidy or fee reimbursement is not eligible under either scheme. If you have a fee reimbursement, compare what each is worth before you choose.
Neither scheme covers studying abroad. Both are for courses in India. If you are going abroad, the moratorium interest is yours to carry, and the moratorium calculator shows how much it adds to your loan before the first EMI.
How to claim it
Both subsidies are claimed through the PM-Vidyalaxmi portal, where you apply for the loan, and the bank lodges the claim. You need an income certificate from a competent state authority. The step by step process, including what to do when a bank says the scheme does not apply, is in our guide to claiming the CSIS interest subsidy, and the portal itself is covered in the PM Vidyalakshmi registration guide. For every other state and central scheme side by side, see the education loan subsidy schemes comparison.
Questions people ask
Can I get both CSIS and PM-Vidyalaxmi?
No. PM-Vidyalaxmi supplements CSIS for students who do not qualify for it. If your family income is up to ₹4.5 lakh and your course qualifies for CSIS, you get full interest subsidy, which is already more than 3 percent.
Does the subsidy continue after the moratorium?
No. Both schemes cover only the moratorium period, which is the course period plus one year. Once repayment starts, you pay interest at the full rate on the sanction letter.
What if my loan is more than ₹10 lakh?
The subsidy is calculated on disbursed principal up to ₹10 lakh only. Interest on the amount above that accrues in full during the moratorium.
Where these figures come from
- Press Information Bureau, PM Vidyalaxmi Scheme backgrounder, 29 July 2026
- PM-Vidyalaxmi portal, Department of Higher Education
Checked against the sources above in October 2026. Scheme limits change, so confirm on the portal before you apply.